It’s Friyay, forex friends! Let’s celebrate by looking at TWO dollar-related charts. See if you can make pips from EUR/USD and USD/CHF’s setups!
I spy with my eye a potential double bottom on EUR/USD! After defending the 1.1150 handle for a second time, the bulls look like they’re gunning for the 1.1250 area that lines up with the “neckline” of the double bottom pattern.
If this is the first time you’ve heard of it, double bottoms are reversal patterns that could produce breakouts as far as the distance between the bottoms and the neckline. We’re talking at least 100 pips in this case!
Waiting for an actual breakout is your best bet if you want to trade this pattern. If you don’t think that the euro would see an upside breakout anytime soon, however, then you could also wait for EUR/USD to make new May lows and aim for the previous lows near 1.0850 instead.
Keep close tabs on this one, fellas!
USD/CHF is chillin’ like a villain just below the 1.0050 mark, which isn’t surprising since it’s near the 100 SMA on the daily time frame.
What makes its current levels more interesting is that it’s only a few pips away from a rising trend line that has been successfully supporting the dollar since February 2018.
Before you buy the dollar like there’s no tomorrow, though, take note that USD/CHF isn’t showing bullish momentum just yet. It’s possible that the pair could see some selling before the bulls step in.
Of course, the bulls might not show up to the party at all. Watch out for further bearish pressure, which could drag USD/CHF below the trend line for the first time since early 2018.
If USD/CHF does break below the trend line, then y’all better be ready with your breakout strategies and trading plans!